Sending Financial Holding Cos. To The 'Penalty Box'
March 14, 2012, 2:20 PM EDT
Law360, New York (March 14, 2012, 2:20 PM EDT) -- The Gramm-Leach-Bliley Act of 1999 created a new "financial holding company" (FHC) designation for banking organizations, which was available to any bank holding company if its bank subsidiaries met certain requirements. Qualification as an FHC allows a bank holding company and its nonbank subsidiaries to engage in a range of activities deemed by the Federal Reserve to be "financial in nature," or incidental or complementary to such a financial activity.
Notably, these financial activities include a full scope of securities underwriting and dealing and insurance activities....
Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.